Abstract
The oil price has fallen significantly from its peak at $128.14 per barrel in March 2012, reaching a low of $29 in February 2016. Kuwait depends mainly on oil revenue to finance infrastructure governmental projects. Oil price decline has a direct impact on economic and capital expenditure in the construction industry’s resources in Kuwait, specifically construction material. This research investigates the effect of changes in oil prices over range from 2007-2017 on the construction industry in Kuwait. Different types of data regarding global economic data, construction materials, and awarded contracts during the study period were gathered and analyzed. A set of statistical and correlation analysis are performed. The study revealed that many construction materials are affected by oil price in Kuwait. The GDP is highly affected by oil price drop; this implies that there is a limited result of government plans to divers governmental finance. A regression model is proposed to forecast the construction cost per square meter in Kuwaiti dinar based on study variables. The study results can be used to evaluate the effect of oil price drop in similar construction environments such as Gulf countries and to predict construction costs changes due to oil price decline.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
